SNC-Lavalin reports Q3 profit up compared with a year ago
The Canadian Press
SNC-Lavalin Inc. reported robust organic growth and increased profits in its latest quarter despite feeling the effects of currency fluctuations.
"Recent performance highlights our ability to capture market share in our core geographies, which continue to demonstrate resilient growth," Ian Edwards, chief executive officer of SNC, said in a statement on the company's third-quarter results on Friday.
SNC's engineering services backlog grew 20 per cent to $4.6 billion this quarter, which could help to sustain momentum into the fourth quarter, said National Bank analyst Maxim Sytchev.
In a conference call to discuss the Montreal-based company’s latest results, Edwards said that the company will remain resilient due to sustainable infrastructure demand from the public sector, despite challenging global economic circumstances.
Edwards said that in addition to SNC's core markets, the firm also saw significant demand from the Middle East for sustainable building development projects to support population growth.
Results were mixed compared with analyst forecasts, said Sabahat Khan of RBC Dominion Securities in a note to clients. Khan noted that the infrastructure segment's loss was larger than RBC had expected, though the services side, which has been the focus for the company in recent years, was in line with projections.
SNC said progress on all three of its infrastructure projects remained strong in the quarter and that its two remaining Ontario projects remain on track to be largely physically complete by end of the year
The engineering firm said its net income amounted to $44.7 million or $0.25 per diluted share for the quarter ended Sept. 30.
The results compare with a net income of $18.6 million or 11 cents per diluted share in the third quarter of 2021.
Net cash flow from operations in the quarter amounted to -$159 million compared to -$65 million in the quarter of last year.
Revenue for this quarter totalled $1.89 billion, up from $1.81 billion in the same quarter last year.
On an adjusted basis, SNC Lavalin said it earned 30 cents per share in its latest quarter compared with an adjusted loss of 23 cents per share in the same quarter last year.
Analysts on average had expected adjusted earnings of 33 cents per share and $1.78 billion in revenue, according to estimates compiled by financial markets data firm Refinitiv.
(C) The Canadian Press